The road toward a seamless global real estate portfolio
categories: Indexes, Americas, EMEAI, Investing (Investment Management), Performance Analysis, Portfolio Construction and Optimization, Asia Pacific, Asset Owners, Research Paper, Real Estate, TEUBEN Bert, Asset Managers (Quant or Fundamental), MCELREATH Brent, Real Estate Products & Services
Real estate investors can analyze performance of direct real estate in detail. However, listed real estate, which includes public REITs, rarely offers detailed data, making it challenging to monitor a portfolio consisting of both private and public assets. Two developments are focusing issue: 1) real estate will constitute a new GICS® sector as of August 31 and 2) many asset owners seek to globalize their real estate portfolios: adding international listed securities is a simple and often liquid way of achieving this goal. This paper proposes mapping listed real estate asset and vehicle performance to existing benchmarks, potentially enhancing market transparency, analytics and benchmarks.